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More taxes are likely on the cards for SA, the JSE warns that Oakbay risks suspension and President Jacob Zuma admits his adviser kept mum on his business interests.
Govt now spends more on servicing debt than social grants
The government now spends more money on servicing debt than social grants, according to political analyst Daniel Silke.
This growing gap between revenue and expenditure by government means the pressure on government to raise taxes, especially indirect taxes, will become more and more acute. This in turn will put pressure on citizens and raise frustration on ground level, said Silke.
"SA’s economic malaise is reflected in the gross domestic product (GDP) growth rate as an indicator of the inability of our policy framework to address issues facing the country. SA has actually underperformed emerging markets."
Read the full story by Fin24's Carin Smith.
JSE warns that Gupta-owned firm risks suspension
The JSE is considering suspending Gupta-owned Oakbay Energy and Resources because it no longer has an audit committee chairperson, sponsor or transfer secretary, which the stock exchange requires for a company to trade.
This was revealed by Oakbay on Thursday in a statement to shareholders, in which it said it “is considering various alternatives available to it”.
Oakbay Resources is facing mounting challenges as media houses publish daily exposés from the #GuptaLeaks, a database of between 100 000 and 200 000 emails that reveal behind-the-scenes communications of the Guptas' many enterprises.
R149m Eskom contract: Zuma adviser kept mum on business interests
President Jacob Zuma admitted in a Parliamentary response that his special adviser Silas Zimu only declared his non-executive directorship of Cape Gate Parepha after the company won a R149m contract from Eskom, reports Fin24's Liesl Peyper.
Democratic Alliance spokesperson on public enterprises Natasha Mazzone asked Zuma whether his special adviser declared his business interests before the company was awarded a contract to supply Eskom with wiring.
“The non-executive directorship was not declared before the specified company was awarded a R149m-contract to supply Eskom with wiring,” Zuma responded. “The delegated executive authority is in engagement with the special adviser with regards to the declarations of interest,” Zuma said.
Irregular expenditure in municipalities balloons to over R16bn - AG
Deviation from supply chain management regulations resulted in the irregular expenditure of municipalities ballooning over 50% to R16.81bn, the auditor general revealed.
According to auditor general Kimi Makwetu’s report on local government audit outcomes, released on Wednesday, the expenditure does not necessarily mean money was wasted or that fraud was committed, but is rather an indication of non-compliance.
The auditor general assessed 263 municipalities and 51 municipal entities. On average, 20% of the 263 municipalities was classified as having “robust and strong” financial controls, said Makwetu.
“The challenge is to push the same discipline on the others,” he said. Compliance was fairly weak in the area of supply chain management. Ninety-eight percent or R16.5bn of irregular expenditure was as a result of non-compliance with legislation.
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